Protect Your TransactionSM (PYT) provides all parties to a real estate transaction with peace of mind that the Lender will deliver on its commitment to close on time. Take a moment to learn more about PYTSM in this article, and then ask the obvious question: "Why would I use a lender that doesn't provide a PYTSM commitment?"
Certified PYTSM Lenders commit to the following:
- Lender will issue a loan commitment on or before 15th days from receiving a complete mortgage application (for eligible, approved applications) evidencing Lender's commitment to close on time
- Lender will pay up to $10,000 in the event a transaction is canceled by Seller due to Lender's failure to fulfill the terms of the loan commitment
Why PYTSM Was Created
When real estate is bought and sold, both the Buyers and Sellers rely on a Lender Pre-Approval before committing to open escrow. The Buyers incurs certain up-front expenses (including Inspection, Appraisal, and oftentimes HOA Certification fees). These expenses may exceed $1000 in total. The Sellers will also incur out of pocket expenses, as they are already making plans to buy their new home once their existing home sells. Additionally, the Real Estate Agents on both sides of the transaction continue to expend significant effort, providing their professional advice and ensuring that their respective clients' interests are protected throughout the transaction.
Essentially, all parties need to have confidence that this sale will indeed happen. Prior to the inception of PYTSM, if the Lender failed to fulfill its offer to lend, the lender was not financially responsible. A certified PYTSM lender puts its money where its mouth is, giving all parties a firm commitment and assurance that the transaction will close as expected.
Have you ever heard of a Lender putting up to $10,000 of real money to back up its loan commitment? Have you ever worked with a Lender who will give you transparent online information as to where a borrower is in the loan process? With PYTSM, you now have this peace of mind!
How PYTSM Benefits Real Estate Agents
Real Estate Agents have a fiduciary duty to obtain the best price and terms for their clients. In a competitive bidding situation, more than just the offered price will be considered by the Seller; the terms and conditions of the offer make a material difference in determining the "best" offer. Real Estate Agents should recommend a certified PYTSM Lender to ensure the strongest possible offer - not just as to price, but also as to probability of closing - the most important term of all!
How PYTSM Benefits the Buyer
As a Buyer, you should know that Sellers frequently receive multiple offers on their home. The Sellers of your potential new home are typically purchasing a new home for themselves and may base their decision as to which offer to accept on whom they believe is most likely to perform (i.e. close escrow on time). Presenting your purchase offer with a PYTSM commitment will assure the Seller that your creditworthiness has already been approved by your Lender, and that Lender is willing to back that approval with up to a $10,000 performance assurance.
How PYT Benefits the Seller
The biggest transaction risks a Seller faces are the Buyer's ability to obtain a loan approval and the Lender's ability to close on time. Any failure or delay in this process can jeopardize not only the immediate transaction, but also the Seller's subsequent purchase. A certified PYTSM Lender reduces those risks by providing a decision within 15 days of taking an application from the Buyer and by backing its commitment to lend with up to a $10,000 performance assurance. If you are a Seller with a new home purchase contingent on the sale of your existing home, make sure you are selling your home to a Buyer with a PYTSM loan commitment!
I encourage you today to contact a PYTSM certified lender. Start the home buying and home selling process from a position of strength knowing PYTSM is behind you.
After all - It's your transaction. Make sure it's protected.
How do I get started with the PYT process?
All paperwork, application tools, and details can be acquired by contacting Jason Gordon.
Where can I read the "fine print" about PYT?
Finally there are Lender's who are willing to put their money where their mouth is!
Protect Your Transaction (PYT)